Solitario and Ely Gold Receives $4.0 Million Payment From Sandstorm And Updates Activities On Its MT. Hamilton Gold Project, Nevada

January 15, 2013

Denver, Colorado: Solitario Exploration & Royalty Corp. ("Solitario;" NYSE MKT: XPL; TSX: SLR) and Ely Gold & Minerals ("Ely Gold;" TSX.V: ELY)
are pleased to announce that the joint venture has received the second
and final payment of $4.0 million from Sandstorm Gold (NYSE MKT:
SAND; TSXV: SSL.V)
for the sale of a NSR royalty on its Mt. Hamilton gold-silver project
in Nevada. On June 11, 2012 Solitario announced the sale of a 2.4% NSR
royalty for $10.0 million and received an initial US$6.0 million payment
from Sandstorm. The Mt. Hamilton gold project, located in Nevada,
U.S.A., is held by Mt. Hamilton LLC ("MH-LLC") that is 80%-owned by
Solitario and 20%-owned by Ely.

As part of the agreement with Sandstorm, MH-LLC has an option to
repurchase up to 100% of the NSR for US$12 million, provided that
Solitario enters into a gold stream agreement with Sandstorm that has an
upfront deposit of no less than US$30 million. This option expires on
December 11, 2014. In addition, MH-LLC has provided Sandstorm with a
right of first refusal on any future royalty or gold stream financing
for the Mt. Hamilton project.

Mt. Hamilton Project Update

In 2012 Solitario achieved important milestones on its Mt. Hamilton gold project in Nevada. These included:

In February the Mt. Hamilton Feasibility Study was completed

In June and August we secured important project financing from Sandstorm Gold and RMB Australia Holdings Limited, respectively

In September we added new resources in the Seligman area

In the second half of 2012 we completed field work necessary to evaluate the economic viability of the Seligman resource

In November the Plan of Operations was filed with the U.S. Forest Service

In 2013 our focus will be on environmental permitting to allow for
project construction and subsequent gold and silver production. Other
activities include metallurgical testing of Seligman mineralization and
exploration drilling in the Wheeler Ridge area that lies immediately
south of the Centennial deposit. The Wheeler Ridge zone displays a
large gold in soils anomaly that measures approximately 5,000 feet long
and up to 1,000 feet wide. Only a very small area of this significant
soil anomaly has been drill tested.

Terms of the Mt. Hamilton LLC Joint Venture

Solitario and Ely Gold formed Mt. Hamilton LLC ("MH-LLC"), a limited
liability company which holds 100% of the Mt. Hamilton project assets
under an Operating Agreement. Per the terms of the Operating Agreement,
DHI-US, Ely Gold's wholly owned US subsidiary, has a 20% interest in
MH-LLC and Solitario has an 80% interest.

About Solitario

Solitario is a gold, silver, platinum-palladium, and base metal
exploration, development and royalty company actively exploring in
Brazil, Mexico, Peru and Nevada. Solitario has significant business
relationships with Votorantim Metais and Anglo Platinum. Solitario is
traded on the NYSE MKT ("XPL") and on the Toronto Stock Exchange
("SLR"). Additional information about Solitario is available online at
www.solitarioxr.com .

About Ely Gold

Ely Gold is focused on the acquisition and development of gold resources
in North America. Ely Gold is traded on the TSX Venture Exchange
("ELY"). Additional information about Ely Gold is available online at
www.elygoldandminerals.com.

FOR MORE INFORMATION AT SOLITARIO, CONTACT:

Debbie Mino-Austin

Director -- Investor Relations

(800) 229-6827

Christopher E. Herald

President & CEO

(303) 534-1030

FOR MORE INFORMATION AT ELY GOLD, CONTACT:

Steve Kenwood

Director

(604) 488-1104

Trey Wasser

President & CEO

972-803-3087

This press release includes certain "Forward-Looking
Statements" within the meaning of section 21E of the United States
Securities Exchange Act of 1934, as amended. All statements, other than
statements of historical fact, included herein, including without
limitation, statements regarding potential mineralization and reserves,
exploration results and future plans and objectives of Solitario, are
forward-looking statements that involve various risks and uncertainties.
There can be no assurance that such statements will prove to be
accurate and actual results and future events could differ materially
from those anticipated in such statements. Development of Solitario's
properties are subject to the success of exploration, completion and
implementation of an economically viable mining plan, obtaining the
necessary permits and approvals from various regulatory authorities,
compliance with operating parameters established by such authorities and
political risks such as higher tax and royalty rates, foreign
ownership controls and our ability to finance in countries that may
become politically unstable. Important factors that could cause actual
results to differ materially from Solitario's expectations are disclosed
under the heading "Risk Factors" and elsewhere in Solitario's documents
filed from time to time with Canadian Securities Commissions and the
United States Securities and Exchange Commission.

Neither TSX Venture Exchange nor its Regulation Services Provider (as
that term is defined in the policies of the TSX Venture Exchange)
accepts responsibility for the adequacy or accuracy of this release.